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Although Hank is retired, he is an excellent handyman and often works part time on small projects for neighbors and

friends. Last week his neighbor, Mike, offered to pay Hank $$500$ for minor repairs to his house. Hank completed the

repairs in December of this year. Hank uses the cash method of accounting and is a calendar$-$year taxpayer. Compute

Hank's gross income for this year from each of the following alternative transactions:

a$.$ Mike paid Hank $$200$ in cash in December of this year and promised to pay the remaining $$300$ with interest in three months.

Gross Income